Orlando First Time Home Buyers use your $8000 Tax Credit as your Down Payment

Ok there have been rumors, I have posted blogs and had to retract those blogs. I have spoken to local and state agencies as well as the Government agency on the national level that is handling the First Time Home Buyer tax credit and have the skinny.

The program is called Florida Home Buyer Opportunity Program. Phew, what a name, but yes if you are a qualifying first time home buyer you will be able to use your $8000 tax credit as your down payment. However the rule is it's up to  $8000 or 10% of the homes purchase price. IE: you buy a $75000 home you only get $7,500. The other rule is these funds will have to be repaid once you close on the home so it's a short term loan with no interest from the government. 

So here is how it will work. Ex: You qualify for a home loan for $150,000, but dont have funds saved for the 3.5% down payment or $5250. You will utilize county SHIP programs to get a down payment loan of $8000 to satisfy your down payment requirement. 30-45 days later you close on the home and can then amend your tax return or wait until you file your 2009 return. Once you have done that you will have to take the $8000 and repay the local SHIP office. 

The bill goes into effect tomorrow July 1. However the state agencies have not yet pushed out the funds to the local agencies with policies and procedures so the ability to use your $8000 tax credit to purchase your first home probably wont happen until August or September sometime. 

If you are looking for more information on purchasing a home around the Orlando area as a first time home buyer contact me at 407-810-6304 (text or call) or twitter me at LakeMaryRealtor or email me at Heather@HeatherTheRealtor.com